Back over R12/$: Is the Rand's run over?

A week of action transpired in South Africa, as Ramaphosa set about making plans for the next generation of business, infrastructure, and more. All of which require one major thing, which is often the stumbling block:

Funding from investors

Being an emerging country and market, it is higher risk for investors. But with the potential of far higher returns - a risk that some, are willing to take...

...and Ramaphosa is setting about finding those persons.

This all sounds like good news, but there are likely to be some significant hurdles. But more on that later...

The Rand had an excellent week...until Friday arrived - then things went a little pear-shaped!

Join us as we take a look at how the week played out...

The week was filled with major news events, both local and global, and these were some of the biggest ones which we kept an eye on:

Investment drive - big plans were announced on the future of South African investment...

The A Team - the first step of the Investment Drive was Ramaphosa putting together 'The A Team' of investment searchers, in an attempt to lure investors into South Africa

SARS crackdown - as always, being this time of year and with SARS missing their targets, they are starting a crackdown on taxpayers who did not file for 2017.

UK gives SA a boost - Theresa May met with Ramaphosa this last week, and with that came funding of just short of R1bn from the United Kingdom

Steinhoff - the battered company continued to receive attention this week, as German prosecutors began to lay into them.

Land issue - it continues to be the most troubling part of Ramaphosa's presidency, and is surely going to be the bugbear of both present and potential investors...

The major talking point for the week was once again, Mr President Ramaphosa.

His initiatives this week gave many hope, that his 'New Dawn' was becoming a reality. What was promised in his SONA speech just a few hours after his election appeared to be coming to light.

An 'A Team' of investment hunters were appointed - including Trevor Manuel and Mcebisi Jonas

So...wow - are things really happening?

Yes, maybe. But we need to look a little deeper into this. As always, when these claims were put forward, there were some voices of reason shouting over the wave of optimism at the ANC actually looking at kick-starting an economy which has been stagnated for years.

Yet...

...there are stumbling blocks.

And first and foremost, the stumbling block is land expropriation - how can SA expect to get investments with this hanging over the market?

And, in fact, it goes further than that.

The proposed amendment of Section 25 of the Constitution is not just land. It is ALL forms of property, including:

Oil prices hit a high we have not seen since 2014, at 72 USD to the barrel.

The IMF (International Monetary Fund) has revised SA’s growth outlook to 1.5% and 1.7% for 2018 and 2019 respectively (upwards from 0.9% for both years).

It was certainly an up and down week globally, and to provide some clarity to our subscribers, we released our next forecast on Wednesday evening with the expected outlook for the coming days, with the market expected to bottom out soon before rising strongly:

Testimonials

"An improvement of about 18 cents on the dollar..."

"Thanks once again for the good service.

By using your forecast I was able to convert my US Dollars into Rands at the correct time and got top rate – an improvement of about 18 cents on the dollar. The last lot of money I brought in and I didn't use your forecast. It was stable around 11.30 for a few weeks so decide to bring it in. The day after it shot up to around 12. That wouldn't have happened if I had seen your forecast.

Thanks again"

Rob Wilmot
Cape Town, South Africa

"I saved at least R250,000... obviously one of the best investments of my life."

"You motivated me to transfer my foreign allowance instead of waiting for the rand to strengthen.

I am now very thankful that I did. I saved at least R250,000 by reading the rand exposé and looking at the ZAR/USD forecasts. It was obviously one of the best investments of my life.

Regards,"

Wynand Coetzer
Stellenbosch, South Africa

"If only I had listened to your prediction!!"

"I now see your point of how the markets can completely disregard fundamental events.

I would have thought the ZAR would strengthen ... but instead the market went in the opposite direction, costing me money for the time being.

If only I had listened to your prediction! It seems Elliot accounted for these bizarre movements without reason.

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